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The economic environment the speaker foresees for the next year. Then a discussion of the pressures the government will be under from the election timetable. The policy implications of these forces as they come together. These issues are discussed under the following headings: The Economic Environment; Canada Continues to Perform Strongly; Black Monday and the Concerns for 1988; Global Imbalances; The 1988 Economic Direction; The Election Environment; Critical Policy Areas; Summary. Some concluding remarks stating that "this is the time when the Canadian government should avoid all other distractions and concentrate on following through and delivering on its current policy initiatives.